Revenue and profit decline in the last fiscal quarter –

nintendo It issued its financial report for the second quarter of the fiscal year 2021/2022, which shows: net decline In the revenue and profit compared to the previous year. There is talk of $2.70 billion in revenue (-26.7% year over year) and $897 million in profit (-31.7%), with Nintendo Switch sales down 39.7% and software down 19%. The only growing segment is digital-only subscriptions, add-ons and games, which saw 17% growth over the previous year.

One of the main reasons for the fall is the lack of a solid launch like that of Animal Crossing: New Horizons, which if you remember it marks the entire 2020 of Nintendo. In the same fiscal quarter last year 40% of players who bought Nintendo Switch They also took a copy of the latest Animal Crossing. In short, the game also sold hardware.

Other factors are: the semiconductor crisis, COVID-19’s reduced impact on people’s social lives (fewer people being forced to stay at home), and the success of Monster Hunter Rise that reduced first-party sales (Nintendo apparently earns less than third-party ones from it) From the first parties).

Let’s see how revenue is distributed among different Slices Where Nintendo is activated:

  • Console hardware: $1.17 billion / 43%
  • Off-the-shelf software: $0.80 billion / 30%
  • Digital software: $0.30 billion/11%
  • Subscriptions/expansions/digital-only titles: $0.31 billion/12%
  • Mobile license + IP: $0.11 billion / 4%

Notably, digital sales totaled $611 million, 3% lower than the previous year.

A separate note deserves mobile sector, down 8.5% from last year, probably due to fewer launches and less public interest on the part of the company, which has given it a bit more for itself.

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Phil Schwartz

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